Compilation on quartus tool fails for encrypted verilog and verilog header files

Could you try to set the synthesis tool to Synplify Pro in Quartus? Go to Setting > EDA Tool Settings > Design entry/ synthesis > Synplify Pro.

Usually third party encryption tool will need Quartus public key to encrypt then the Quartus can compile it.

The documentation that I found about Synplify support:

https://www.intel.com/content/www/us/en/docs/programmable/683122/18-1/synopsys-synplify-support.html

Best Regards,

Richard Tan